Fiksu: App Marketing Costs Continue to Grow in July

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By Brandy Shaul

cost per loyal user july 650User acquisition and marketing company Fiksu has released its indexes for the month of July, showing continued increases in overall mobile app marketing competition and costs, despite a few decreasing figures. July’s iOS Cost Per Loyal User Index came in at the second-highest rate ever in the history of the Fiksu Indexes, at $1.97 for the month. This is a nine percent increase year-over-year, but a decrease from June’s $2.23, which was the most expensive month ever. Fiksu defines a loyal user as one who opens an app at least three times after download.

Meanwhile, the Android Cost Per Install rate decreased nine percent in July, to $1.27. However, this figure is a hefty 44 percent increase over the same time last year, which falls in line with the overall trend of increased marketing costs. The iOS Cost Per Install rose to $1.22 in July, a 16 percent increase year-over-year and a 24 percent increase from June.

For July, Fiksu’s Cost Per Launch Index, which tracks the cost of repeated app launches over time and focuses on the lifetime value of users, showed an increase to $0.11 for Android (a 12 percent year-over-year increase) and a decrease of 1 percent to $0.17 on iOS (a 16 percent increase year-over-year). Fiksu speculates this number could have climbed even higher, but was likely impacted by users with more time to engage with apps during summer vacations and other free periods.

Fiksu CPL Index July 2014While summer usually means a slowdown in mobile activity, Fiksu’s App Store Competitive Index showed a two percent boost for July, to 6.2 million daily downloads. That’s up from June’s figure of 6.1 million, and an increase of seven percent year-over-year. This index tracks the average number of daily downloads for the top 200 free iPhone apps in the US.

With the expected launch of new iOS devices on the horizon, this number will likely receive a boost during the upcoming holiday season. Last year, the App Store Competitive Index increased from 5.7 million to 6.4 million downloads from November to December 2013, due to the increase of new iPhone owners receiving devices during the holidays.

“The July Fiksu Indexes reflected the typical slowdown of summer behavior but confirmed that underlying app marketing costs are still rising consistently year-over-year,” said Micah Adler, CEO of Fiksu. “However, marketers need to be sharpening their strategies in readiness for the next few months. In addition to powerful new channels like Twitter, a new iPhone and iOS always shake up the app marketing landscape.”

A full look at Fiksu’s July data can be found on the company’s website.